Trichloroisocyanuric acid market faces excess capacity

 Trichloroisocyanuric acid (TCCA), which is dominated by the consumption of disinfectants, faced many problems and difficulties such as overcapacity and export obstruction. The TCCA operating rate showed a declining trend year by year. Customs statistics show that since the beginning of this year, the TCCA market has sold at a price of 8,000 to 15,000 yuan per ton, and the average operating rate of the industry is 61%. Compared with the relatively mature TCCA industry, the domestic consumer market is still at a stage of development, and its per capita consumption lags far behind that of developed countries.

However, the domestic TCCA market is also growing. According to industry estimates, with the rapid development of the overall level of the domestic economy, the increased awareness of national disinfection and the development of TCCA in the fields of bleaching agents, anti-shrinkage agents, and water treatment agents, it is expected that domestic TCCA consumption will increase during the 12th Five-Year Plan period. It will grow at a rate of 9.5% per year.

According to the reporter, TCCA is a very strong oxidant and chlorinating agent with high efficiency, broad spectrum, and relatively safe disinfection. At present, TCCA is mainly used as a disinfectant on a global scale, and the main consumption areas are concentrated in developed countries or regions such as the United States, Japan, and Western Europe. While the major consumer areas of China's TCCA products are concentrated in industries such as sericulture, the awareness of national health disinfection is still at a relatively low level.

China is a major exporter of TCCA. The export regions are mainly Western European countries and the United States. However, due to the deterioration of the international economic environment in recent years and the rise of trade protectionism between countries and regions, the export situation of TCCA is not optimistic. Coupled with the complexity of TCCA products and complicated export procedures, export profits have decreased. Therefore, many domestic enterprises have given up their export business.

The development of domestic TCCA industry faces many bottlenecks and sales problems. The market application is not high, and the narrow application area is one of the important reasons. At present, China’s economic development is still in a period of structural adjustment and economic transition. The economic development level in many regions is underdeveloped or underdeveloped, and people’s awareness of disinfection and environmental protection is poor, leading to a lack of demand for TCCA consumption. At present, the average annual domestic TCCA consumption is only 150,000 tons, which is only 1/3 of the production capacity.

Domestic TCCA applications have obvious limitations. At present, the main domestic consumption areas of TCCA products are concentrated in industries such as sericulture and aquaculture, water treatment, and disinfection in public places and daily anti-virus. The sericulture and aquaculture industries accounted for 67% of TCCA's total domestic consumption, 8% of water treatment, 15% of disinfection in public places, and 10% of daily use of anti-virus. Compared with developed countries, the use of TCCA in China is quite narrow, and its application in the domestic textile industry, printing and dyeing industry, and food processing industry is basically blank, while the application of the largest amount of water treatment in the world is still at a preliminary level. stage. From a global point of view, swimming pool water disinfection is the main application area of TCCA, which accounts for about 80% of global consumption.

The industry believes that as China's economy continues to develop and people's living standards increase, residents' awareness of health, environmental protection, and disinfection will gradually increase. In addition, with the increasing shortage of water resources and the meticulous development of other industries, TCCA still has room for expansion in industrial water recycling and textile, chemical, food and other industries. With the continuous expansion of downstream applications, TCCA's demand will show a steady growth.